The accounting records of Tama Co. show the following assets and liabilities as of December 31, 2016 and 2017 December 31 Cash 2016 2017 $30,000 $ 5,000 25,000 Accounts receivable 35,000 Office supplies Office equipment Machinery 8,000 13,500 40,000 40,000 28,500 28,000 0 250,000 Building Land 50,000 Accounts payable 4,000 12,000 0 250,000 Note payable Page 92 Required 1. Prepare balance sheets for the business as of December 31, 2016 and 2017. (Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities.) 2. Compute net income for 2017 by comparing total equity amounts for these two years and using the following information: During 2017, the owner invested $5,000 additional cash in the business (in exchange for common stock) and the company paid $3,000 cash in dividends. Check (2) Net income, $11,000 3. Compute the December 31, 2017, debt ratio (in percent and rounded to one decimal). (3) Debt ratio, 63.6 %